THE PERFORMANCE MANAGEMENT SYSTEM AS IMPLEMENTATION TOOL FOR INTEGRATED DEVELOPMENT PLANS: THE CASE OF NGWATHE LOCAL MUNICIPALITY

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1 THE PERFORMANCE MANAGEMENT SYSTEM AS IMPLEMENTATION TOOL FOR INTEGRATED DEVELOPMENT PLANS: THE CASE OF NGWATHE LOCAL MUNICIPALITY by RAPULO SOLOMON MOTINGOE Dissertation submitted in fulfilment of the requirements for the degree Master of Public Management and Governance at the Potchefstroom Campus of the North-West University SUPERVISOR: PROF G. VAN DER WALDT 2011 i

2 ACKNOWLEDGEMENT I wish to thank the following persons for their contributions towards my research: Professor Gerrit Van der Waldt, a world-class academic I have ever met, for leading this study and especially for returning feedback in good time despite his heavy schedule. My colleague, Heather Dumas, for her tolerance and assistance in typing this dissertation. Councillors and Managers of the Ngwathe Local Municipality, for assistance during the data collection of this study. ii

3 ABSTRACT One of the major challenges facing municipalities in South Africa is the need to achieve the development goals and objectives contained in the Integrated Development Plans (IDPs) given the limited resources and populations which are increasing at a disproportionate rate to the resources available. The IDPs are the management and planning instruments and are only effective if they enable municipalities to improve and accelerate the delivery of essential services and development. In this context, a mechanism is required to determine how municipalities are faring in terms of the services they intend to deliver to their communities and a Performance Management System (PMS) is such a critical mechanism. The purpose of the study was to investigate the extent to which Ngwathe Local Municipality utilises its PMS as a tool for effective implementation of its IDP to achieve its developmental priorities and objectives. It was found during the literature review that when the processes of IDP and PMS are linked, the resulting performance is more likely to meet the needs of an institution. iii

4 OPSOMMING Een van die grootste uitdagings in munisipaliteite in Suid-Afrika is die behoefte om die doelstellings en doelwitte te bereik wat vervat word in die Geïntegreerde Ontwikkelingsplanne, vanweë die feit dat bevolkingsgroei toeneem op ʼn vinniger basis as wat daar hulpbronne beskikbaar is. Die Geïntegreerde Ontwikkelingsplanne is die bestuurs- en beplanningsinstrumente wat slegs doeltreffend is indien hulle munisipaliteite in staat stel om te verbeter en die lewering van noodsaaklike dienste en ontwikkeling te versnel. Daarom is ʼn meganisme nodig om te bepaal hoe munisipaliteite vaar in terme van die dienste wat hulle beplan om aan hul gemeenskappe te lewer. Die Prestasiebestuurstelsel is so ʼn kritieke meganisme. Die doel van die studie was om die aard en omvang te bepaal van hoe die Ngwathe Plaaslike Munisipaliteit hul Prestasiebestuurstelsel benut om as hulpmiddel te dien vir die doeltreffende implementering van hul Geïntegreerde Ontwikkelingsplan en sodoende hul ontwikkelingsrol te vertolk en om hul prioriteite en doelwitte te bereik. Tydens die literatuurstudie is bevind dat indien die prosesse van die Geïntegreerde Ontwikkelingsplanne en die Prestasiebestuurstelsel gekoppel is, dit die gevolg kan hê dat prestasie meer geneig is om aan die behoeftes van ʼn instelling te voldoen. iv

5 TABLE OF CONTENTS ABSTRACT OPSOMMING CONTENTS PAGES LIST OF FIGURES LIST OF TABLES ACRONYMS iii iv v-ix ix x xi CHAPTER 1 INTRODUCTION 1.1 ORIENTATION AND PROBLEM STATEMENT RESEARCH QUESTIONS RESEARCH OBJECTIVES CENTRAL THEORETICAL STATEMENT RESEARCH METHODOLOGY Literature study Databases consulted Empirical study Data collection techniques Sources of data Analysis and validity of data Procedure Preliminary Chapters 9 CHAPTER 2 INTEGRATED DEVELOPMENT PLANS AND THEIR IMPLEMENTATION IN SOUTH AFRICAN MUNICIPALITIES 2.1 INTRODUCTION THE EVOLUTION OF INTEGRATED DEVELOPMENT PLANS IN SOUTH AFRICA STATUTORY AND REGULATORY FRAMEWORK OF IDPs Constitution of the Republic of South Africa Act, 108 of v

6 2.3.2 White Paper on Local Government, Local Government: Municipal Systems Act, 32 of Intergovernmental Relations Framework Act, 13 of 2005 (IGR) Municipal Finance Management Act, 56 of 2003 (MFMA) Traditional Leadership and Governance Framework Amendment Act, 41 of IDP Guide Packs REASONS FOR DEVELOPING AN IDP OVERVIEW OF IDP METHODOLOGY INTEGRATED DEVELOPMENT PLANS AND BUDGETING Internal and external sources of finance Internal External Grants and transfers OPERATIONALISATION OF THE INTEGRATED DEVELOPMENT PLANS: SERVICE DELIVERY AND BUDGET IMPLEMENTATION PLANS Components of the SDBIP Structure of the SDBIP SIGNIFICANCE OF THE RELATIONSHIP BETWEEN THE MUNICIPALITY AND EXTERNAL RESOURCES IN THE IMPLEMENTATION OF THE IDP ROLE OF THE ORGANISATIONAL STRUCTURE, AND HUMAN RESOURCE MANAGEMENT TOWARDS SUPPORTING IMPLEMENTATION OF THE IDP Organisational structure Human Resource Management RELATIONSHIP BETWEEN LEADERSHIP AND IMPLEMENTATION OF THE IDP ORGANISATIONAL CULTURE AND THE IMPLEMENTATION OF THE IDP SUMMARY 45 vi

7 CHAPTER 3 INTEGRATED DEVELOPMENT PLANS AND PERFORMANCE MANAGEMENT SYSTEM A CONCEPTUAL LINKAGE 3.1 INTRODUCTION LEGISLATIVE AND POLICY DIRECTIVES ON PERFORMANCE MANAGEMENT SYSTEMS The Constitution of the Republic of South Africa Act, 108 of White Paper on Local Government, Local Government: Municipal Systems Act, 32 of Performance Management Guide for Municipalities, Local Government: Municipal Finance Management Act, 56 of DEFINING AND CONCEPTUALISING KEY PERFORMANCE CONCEPTS The term performance Performance Management THEORETICAL OVERVIEW OF PERFORMANCE MANAGEMENT SYSTEMS Core components of a PMS PRINCIPLES OF A PERFORMANCE MANAGEMENT SYSTEM BEST PRACTICES FOR PERFORMANCE MANAGEMENT SYSTEMS PURPOSE OF PERFORMANCE MANAGEMENT SYSTEMS IN MUNICIPALITIES DESIGNING AND IMPLEMENTING A PERFORMANCE MANAGEMENT SYSTEM IN MUNICIPALITIES Starting the Performance Management Process Developing a Performance Management System Models associated with Performance Management Systems Balanced scorecard Citizen s Charters South African Excellence Foundation and Model 67 vii

8 3.9 LINK BETWEEN THE INTEGRATED DEVELOPMENT PLANS AND PERFORMANCE MANAGEMENT SYSTEMS IMPLEMENTING A PERFORMANCE MANAGEMENT SYSTEM FOR THE ACHIEVEMENT OF DEVELOPMENTAL OBJECTIVES THROUGH INTEGRATED DEVELOPMENT PLANS Planning for performance Setting priority areas Setting objectives Setting key performance indicators (KPIs) Setting targets CONCLUSION 80 CHAPTER 4 THE PERFORMANCE MANAGEMENT SYSTEM AS AN IMPLEMENTATION TOOL FOR INTEGRATED DEVELOPMENT PLANS: EMIPIRICAL FINDINGS 4.1 INTRODUCTION OVERVIEW OF THE CASE STUDY: UTILISING THE PMS AS IMPLEMENTATION TOOL FOR THE IDP AT NGWATHE LOCAL MUNICIPALITY RESEARCH METHODOLOGY DATA GATHERING TECHNIQUE SAMPLING RELIABILITY AND VALIDITY DATA PRESENTATION AND ANALYSIS OF FINDINGS SUMMARY 115 CHAPTER 5 OVERVIEW OF CHAPTERS, RECOMMENDATIONS AND CONCLUDING REMARKS 5.1 INTRODUCTION OVERVIEW OF CHAPTERS RESEARCH OBJECTIVES Objective 1: Providing a theoretical overview of the concept viii

9 of IDP and PMS Objective 2: Exploring policies, systems, structures, approaches and operations within the Ngwathe Local Municipality to implement the IDP Objective 3: Conducting empirical research on PMS to ensure effective implementation of the IDP within the Ngwathe Local Municipality Objective 4: Making recommendations based on research findings in order to improve performance in respect of the IDP CENTRAL THEORETICAL STATEMENT ENCAPSULATION OF THE FINDINGS RECOMMENDATIONS CONCLUSION 123 BIBLIOGRAPHY 125 ANNEXURE A 140 LIST OF FIGURES Fig. 2.1 Phases of the IDP 27 Fig. 2.2 SDBIP as a layered plan 34 Fig. 3.1 Elements of a Performance Management System 55 Fig. 3.2 SDBIP contract 69 Fig. 3.3 Strategic vs in-year institutional business plans 70 Fig. 3.4 Important points of linkage between the IDP process and the Performance Management System 73 Fig. 4.1 Political structure of Ngwathe Local Municipality 82 Fig. 4.2 Administrative structure of Ngwathe Local Municipality 84 Fig. 4.3 PMS Implementation: Process Plan 87 Fig. 4.4 Phases of the IDP process 89 Fig. 4.5 Responsibilities of officials, management and reporting structures 92 Fig. 4.6 Action Plan and Timeframes to be considered for implementation for organisational PMS for the Municipality for a specific financial year 93 ix

10 Fig. 4.7 Ages of Research Participants 99 Fig. 4.8 Years of work experience in Ngwathe Local Municipality 100 Fig. 4.9 Designations of Research Participants 100 Fig Awareness about legislation for Integrated Development Plans and the Performance Management System 101 Fig Familiarity with 2001 PM Guidelines for Municipalities 102 Fig Appropriateness of colleagues knowledge 103 Fig Training and Workshops Attendance 104 Fig Time adequacy for capacity building 104 Fig Capacity Measurement in Implementing PM 105 Fig Existence of Institutional Policies and Guidelines 106 Fig Implementation of Performance Management System 107 Fig Effectiveness of Performance Assessment Systems 108 Fig Conducting quarterly meetings 108 Fig Reporting of Actual Performance 109 Fig Effectiveness of actual performance reporting 110 Fig Existence of Tools for Performance Review 111 Fig Designing of SDBIPs in line with IDP 112 Fig Role of Councillors in PM Implementation 113 Fig. 5.1 Quarterly Performance Management System Implementation Checklist 122 LIST OF TABLES Table 2.1 Municipal Service Partnerships (Public-Private Contracts and Partnerships) 37 Table 3.1 Priorities, Objectives, Strategies and Projects: Economic and Agricultural Cluster 78 x

11 ACRONYMS ANC COGTA DBSA DPLG ETU GTC IDP IGR KPI LED LGTAS MFMA MSA NBI NGO NWU PCC PMS QPMSIC RDP SDBIP African National Congress Department of Cooperative Governance and Traditional Affairs Development Bank of South Africa Department of Provincial and Local Government Education and Training Unit German Technical Cooperation Integrated Development Plan Intergovernmental Relations Key Performance Indicators Local Economic Development Local Government Turnaround Strategy Municipal Finance Management Act Municipal Systems Act National Business Initiative Non-governmental Organisation North-West University Presidential Coordinating Council Performance Management System Quarterly Performance Management System Implementation Reconstruction and Development Programme Service Delivery and Budget Implement Plan xi

12 CHAPTER 1 INTRODUCTION 1.1 ORIENTATION AND PROBLEM STATEMENT Atkinson (2002:5) states that municipalities are one of the foremost development agencies within the South African system of government. She continues by arguing that the writing of the Integrated Development Plans (IDPs) was the formalisation of this new developmental role. Every municipality had to define its own developmental vision and mission, and identify specific programmes and projects associated with their implementation. Section 25 of the Local Government: Municipal Systems Act, 32 of 2000 stipulates that every municipality must adopt a single, inclusive strategic plan for the development of its area. Theron (2007:80) states in this regard that the IDP is the management and planning instrument to achieve the development goals and objectives of a municipality. It contains a municipal council s development priorities, strategies, objectives and a financial plan for the municipality (Nealer, 2008:6). On 2 December 2009, the national Government approved a comprehensive Local Government Turnaround Strategy (LGTAS) and one of the strategic objectives of this mechanism is to improve performance by municipalities in their municipal areas of jurisdiction. According to the LGTAS (2009:2) this implies ensuring that the core administrative and institutional systems are in place and operational. The purpose of the initiative is the need to improve the performance of municipalities. In this regard, Rogers (1994:21) defines performance as the actual progress of outcomes of work. He further maintains that this measurement is conducted because performance 1

13 provides the strongest linkage to the strategic goals of the institution. Isaac- Henry (1997:101) refers to this concept as the integrated techniques and methods that are used to achieve improvement in the productivity and quality of the relationship between inputs, activities, outputs and outcomes in public service institutions. According to Kloot and Martin (2010:231) current strategic management literature suggests that there should be a strong connection between strategic plans and performance measures. Minnaar and Bekker (2005:125) also emphasise that the key principle in the application of modern strategic management methodologies is that these mechanisms should enable organisational performance. Performance is measured in terms of the benefits which an institution produces for the client. In this regard, Van der Waldt et al. (2007:100) state that IDPs are effective if they enable municipalities to improve and accelerate the delivery of essential services and development. These services may include water, electricity, sanitation, refuse removal and roads, while development issues may include land reform, tourism and local economic development. Within the IDP, the objectives are statements of what a municipality aims to achieve in the medium term in order to address the challenges and also contribute to the realisation of its vision (Van der Waldt et al., 2007:104). It is further essential that the objectives must be quantifiable and achievable (Van der Waldt & Knipe, 2001:182). Furthermore, performance targets and indicators should be formulated to measure the performance and impact of the project (RSA, 2000:17). Van der Waldt (2004:53) defines a performance indicator as a measure that describes how well a programme is achieving its objectives. Kearney and Berman (1999:177) state that a performance target is a tool for measuring the success of an organisation in terms of achieving its institutional goal. Therefore, a performance management system (PMS) should be linked to the IDP. 2

14 Pauw et al. (2009:286) assert that when the process of development and approval of the IDP has been completed, a Service Delivery and Budget Implementation Plan (SDBIP) must be developed, based on the strategic direction provided by the IDP. In this regard, Van der Waldt (2004:322) emphasises that the indicators and targets in the SDBIP should be similar to those included in the IDP of a municipality. The SDBIP is the operational plan of a municipality and gives effect to the municipal IDP and budget (National Treasury, 2005:1). It enables municipalities to divide broad objectives of the IDP into service delivery targets for the departmental senior managers. (IDP Skills Program Learner Guide/dplg/2006: 193). In this regard, Pauw et al. (2009:287) further argue that the basis for measuring the actual performance in service delivery against predetermined performance indicators indicates the responsibilities and outputs of every senior manager, inputs required and time deadlines for each output. Thus, a Performance Management System evolves from the Service Delivery and Budget Implementation Plan of the municipality. Kanyane and Mabelane (2009:60) state that a Performance Management System (PMS) is an integrated system to measure the performance of the institution and that of its personnel. Section 26(2) of the Local Government: Municipal Performance Regulations for Municipal Managers and Managers directly accountable to Municipal Managers, 2006 (Regulation No. R805, dated 1 August 2006) stipulates that the purpose of a PMS is to provide a comprehensive system with specific performance standards to assist the employer, management and municipal staff to perform according to the required standards. Verweire and Van den Berghe (2005:7) also emphasise that the purpose of a PMS is to achieve institutional effectiveness. Blackburn et al. (1998:38) state that effectiveness refers to the extent to which a tool enables an institution to achieve an objective. Ngwathe Local Municipality, a category B municipality with a collective executive system, located in the Fezile Dabi District of the Free State 3

15 Province, is the area in which the study was conducted. According to the Report of the Auditor-General (2008:14): The IDP of the Ngwathe Local Municipality does not include key performance indicators and performance targets determined in terms of its PMS; and The key performance indicators set by the Ngwathe Local Municipality do not include any general key performance indicators applicable to the Municipality. In the above context, the Ngwathe Local Municipality Annual Report (2008:82) reveals that there are poor reporting systems on the IDP and SDBIP. The Ngwathe Local Municipality thus does not have adequate performance control measures to achieve the objectives of its IDP. Control measures are the systems that ensure that actual activities correspond to planned activities (Van der Waldt & Du Toit, 1999:201). In this context it becomes problematic to determine the levels of success of its IDP and this situation undermines key socio-economic targets such as poverty alleviation, food security, job creation and infrastructure delivery as well as the accountability of political and administrative decision makers within the Municipality. Based on the preceding scenario, the research question is: To what extent does Ngwathe Local Municipality utilise its PMS as a tool for the effective implementation of its IDP to achieve its developmental priorities and objectives? 1.2 RESEARCH QUESTIONS The research questions are the following: 4

16 What are the theories, principles and best practices associated with performance and PMS? What are the key elements of an IDP and what are the best practices associated with its implementation in municipalities? To what extent may the PMS enable municipalities to achieve developmental objectives by means of the IDPs? What are the existing policies, systems, structures, approaches and operations within the Ngwathe Local Municipality to implement the IDP? How effective are the policies, systems, structures, approaches and operations of the IDP and performance measurement within the Ngwathe Local Municipality? What recommendations may be made to ensure the effective and efficient implementation of the IDP in municipalities by utilising a PMS? 1.3 RESEARCH OBJECTIVES Mouton and Marais (1992:42) state that the research goals provide a broad indication of what researchers wish to attain in their research. In this study, research goals will be seen in the same context as research objectives. Selected objectives of this study are: Providing a theoretical overview of the concepts of PMS and IDP. Exploring policies, systems, structures, approaches and operations relative to the implementation of the IDP within the Ngwathe Local Municipality. Conducting empirical research on PMS to determine implementation effectiveness of the IDP within the Ngwathe Local Municipality. Proposing a number of recommendations based on research findings in order to improve performance in respect of the IDP. 5

17 1.4 CENTRAL THEORETICAL STATEMENT The following central theoretical statement as a guiding instrument for the research is stated: When the PMS is tied into the objectives of the organisation, the resulting performance is more likely to meet organisational needs (Nel et al. 2001:516). 1.5 RESEARCH METHODOLOGY In this study, a qualitative research design was used in order to explore the impact of a PMS on the IDP. According to Brynard and Hanekom (2006:37) qualitative methodology refers to research that produces descriptive data, generally the participant s own written or spoken words pertaining to their experience or perception. Maree et al. (2009:257) are of the view that this is the approach through which data is collected from people immersed in the setting of everyday life in which the study is framed Literature study A literature review was conducted in the study. The literature included publications such as books and articles by experts in the field directly relating to the topic of the research. Hart (1998:1) states that reviewing literature is important because, without it, the researcher will not acquire an understanding of the topic, on what has already been done on it, how it has been researched and what the key issues are. A preliminary random search at the North-West University s Ferdinand Postma Library was conducted and adequate material and literature are available to do research on this topic. This study material and relevant 6

18 literature included books, journals, government publications and printed material Databases consulted The following databases were consulted to ascertain the availability of study material for the purpose of this research: Catalogue of theses and dissertations of South African universities. Catalogue of books: Ferdinand Postma Library (NWU) Empirical study Semi-structured interviews with relevant officials of the Provincial Department of Cooperative Governance, Human Settlements and Traditional Affairs of the Free State Province and Ngwathe Local Municipality were conducted in order to generate qualitative data regarding the extent to which the Ngwathe Local Municipality implement PMS for the effective implementation of its IDP. Fox and Bayat (2007:100) are of the view that these form of interviews are relatively unstructured in the sense that broad questions are asked, allowing the interviewer freedom to determine what further questions to ask to obtain the required information Data collection techniques Semi-structured interviews were conducted to gather information. A set of pre-determined semi-structured questionnaires were developed to guide the researcher during the interviews. Research questions asked in a questionnaire ensure that participants provide the researcher with what is actually taking place and not just their perception regarding the PMS as a tool for the effective implementation of the IDP. 7

19 1.5.5 Sources of data The researcher used purposive sampling. Babbie (1995:225) defines purposive sampling as the selection of a sample on the basis of the researcher s own knowledge of the population, its elements and the nature of research aims. The selected members in the population of senior managers within the Provincial Department were the Chief Director: Municipal Performance and Director: Integrated Development Planning. They are strategic managers responsible for the performance of the twenty-five municipalities in the Free State Province. At the Ngwathe Local Municipality, units of analysis in the population of municipal officials who were interviewed, were the Municipal Manager, Manager: Corporate Services, Integrated Development Planning Officer, the Mayor and Councillor: Community Services. The key responsibilities of these strategic municipal officials are directly linked to the IDP of the Ngwathe Local Municipality. Additional interviews were conducted with the other three programme managers responsible for finance, technical and community services who are directly accountable to the Municipal Manager Analysis and validity of data All data obtained from the interviews and questionnaires were interpreted in order for the researcher to draw a conclusion. An empirical analysis was used to interpret the collected data. In order to ensure validity, interviews and questionnaires were semistructured in a manner that would measure what is intended with regard to policies, systems, structures, approaches and operations to implement the IDP. Validity refers to the extent to which an empirical measure adequately 8

20 reflects the real meaning of the concept under consideration (Babbie & Mouton, 2001:122) Procedure A literature study was undertaken to analyse from existing data how a PMS improves the achievement of the institutional priorities and objectives. Semi-structured interviews were held with identified respondents to determine the existing policies, systems, structures, approaches and operations within the Ngwathe Local Municipality to implement the IDP. Based on the research objectives, all relevant information were analysed and evaluated. All information and data were presented scientifically PRELIMINARY CHAPTERS The study is divided into the following five chapters: Chapter 1: Introduction This chapter explains the problem statement, research methodology, research questions and objectives. Chapter 2: Integrated Development Plans and their implementation in South African Municipalities The chapter outlines the origin, statutory and regulatory framework as well as the implementation of the IDPs in South African municipalities. Chapter 3: Integrated Development Plans and Performance Management System A Conceptual Linkage 9

21 Firstly, the chapter provides the legislative and policy directives of the national government of South Africa and literature exploration with regard to PMS. Secondly, the chapter describes the linkage between the IDPs and PMS. Finally, the chapter concludes by giving an account of how a PMS enables municipalities to achieve developmental objectives by means of the IDPs. Chapter 4: The Performance Management System as an implementation tool for Integrated Development Plans: Empirical findings This chapter focuses on the research conducted in Ngwathe Local Municipality to explore the impact of a PMS on IDPs. The research methodology used in this study is also the focus of the chapter. In other words, aspects of qualitative investigation to be discussed also include the research results. Chapter 5: Overview of Chapters, recommendations and concluding remarks A conclusion is drawn and proposals made on how the PMS may be utilised to implement IDPs based on the facts that are analysed from the research findings. 10

22 CHAPTER 2 INTEGRATED DEVELOPMENT PLANS AND THEIR IMPLEMENTATION IN SOUTH AFRICAN MUNICIPALITIES 2.1 INTRODUCTION Traditionally, local government has been expected to implement development plans that were developed by higher echelons of government, namely, provincial and central government. After the 1994 democratic transition, a dire need arose for a fundamental transformation of local government with a policy that reflects the values of the Constitution of the Republic of South Africa Act, 108 of 1996, (hereafter referred to as Constitution) and which addresses the serious challenges that faced local government. The transformation process that ensued positioned local government as a key role-player in the development process of South Africa. The Constitution requires national and provincial government to support and strengthen the ability of the local sphere of government to manage its own affairs, exercise its powers and perform its functions through legislative and other measures. The local sphere of government consists of municipalities which are instituted for every demarcated municipal area for the whole of South Africa. The purpose of this chapter is to explore the implementation of the Integrated Development Plans (IDPs) by South African municipalities in their respective municipal areas for purposes of achieving their intended developmental priorities and objectives. The chapter commences with the evolution of Integrated Development Plans (IDPs), then provides their statutory and regulatory framework before giving the reasons for developing IDPs. An overview of the IDP methodology is provided. Additionally, attention is focused on the IDPs and budgeting, followed by the 11

23 operationalisation of the IDPs within municipalities. The chapter concludes by indicating how external resources, organisational structure, human resource management, leadership and an organisational culture support the implementation of IDPs. 2.2 THE EVOLUTION OF INTEGRATED DEVELOPMENT PLANS IN SOUTH AFRICA Fitzgerald et al. (1997:3) indicate that in the past the development debate was dominated by modernisation, underdevelopment and dependency theories. Developmental management has served to encourage an unfortunate combination of excessive centralised state planning with inadequate implementation. Authority is rarely delegated and civil society is marginalised. Fitzgerald et al. (1997:16) further point out that a truly developmental state must provide a coherent set of policies and major infrastructures and must facilitate an environment conducive to the implementation of development-friendly policies. The private sector and nongovernmental organisations (NGOs) initiatives must be encouraged and, where necessary, foster partnerships between state, the private sector and NGOs. Marwala (2006:1) defines a developmental state as one where government is intimately involved in the macro and micro economic planning in order to grow the economy. This context was heavily reflected in the literature of South Africa in the 1960s and 1970s. Fitzgerald et al. (1997:3) continue to argue that in South Africa in the 1980s, the development debate itself fell out of the frame to a significant extent as attention was focused on the escalating socio-political struggle and increasing degree of repression that it produced. Then, in the early 1990s, the spotlight turned towards the negotiated transition and slowly the development debate began to emerge once again, but this time in a profoundly different global political context. Wessels and Pauw (1999:100) point to the fact that a concern for development was a response to the continuing situation of mass poverty and gross inequality in South Africa. 12

24 Swanepoel and De Beer (1997:43) define development simply as the opposite of poverty. In other words, development addresses the poverty of people. Wessels and Pauw (1999:100) contend that development may be seen as constructive work aimed at improving human welfare. Human (2007:5) observes that development may be regarded as the process by which poverty is reduced, not only in monetary value, but also in terms of social inclusion and access to goods and services. Fitzgerald et al. (1997:392) maintain that the decision by the national government of South Africa in February 1990 to release jailed leaders of the African National Congress (ANC), unban opposition political parties and begin the long process of negotiation, had a profound influence at local level. From 1990, until the election in April 1994, a distinct viewpoint about the post-apartheid development path received prominence. The ANC-led alliance articulated its consensus on the South African development path in the Reconstruction and Development Programme (RDP) of The RDP has been an integrated, coherent socio-economic policy framework of democratic government that intends to eradicate poverty and deprivation and addresses spatial settlements (ANC, 1994:1). It was the first development-oriented policy document of the African National Congress (Pillay, Tomlinson & Du Toit, 2006:23). In this regard, Fitzgerald et al. (1997:488) emphasise that the RDP details an integrated approach to addressing developmental needs in South Africa. However, Robinson and White (1998:316) are of the view that the RDP was not a plan with detailed targets, let alone mechanisms or costing. It was rather a statement of a vision, in which development meant, first and foremost, the satisfaction of basic needs. According to Krige (1998:13), the fact that historically the level of service delivery in township areas was appalling, prompted the idea of integrated development planning. Human (2007:2) highlights the fact that the Department of Provincial and 13

25 Local Government initiated the restructuring of local government and introduced the integrated development planning process in an attempt to improve the planning process at a local government sphere. It may therefore be argued that integrated development planning has been one of the mechanisms that would enable the new system of local government to cope with its developmental role. Thus, Van der Waldt et al. (2007:52) emphasise the fact that municipalities have a central responsibility to work together with local communities to find sustainable ways of meeting community needs and improving the quality of their lives. According to Gueli et al. (2007) integrated development planning is about different actors and sectors working together under a commonly-designed agenda and realigning individual supply chains to produce a commonly-defined objective or product. Van Donk et al. (2008:122) view integration in the South African context as implying processes such as getting a more strategic focus, the creation of more coherent entities and facilitating joined-up working across sectors. Its major manifestations in policy and legislation include the requirement that every municipality produce an IDP. Odendaal (2004:67) states that integrated development planning as a style of strategic planning that departs from the master planning models of the past, the preparation of the IDPs represents a more flexible model for responding to the many challenges that local authorities face. The formulation of the IDPs became a legal requirement for local councils in November 1996 as a result of the passing of the Local Government Transition Act, 12 of The promulgation required that all transitional metropolitan, district and local councils prepare an IDP. The effect of the enactment was the introduction of an instrument that would assist the newly constituted municipalities to execute their functions in a co-ordinated, strategic, developmental and fiscally responsible manner. Pillay, Tomlinson and Du Toit (2006:196) contend that this was done in haste, in response to a particular opportunity and there was no time to develop the concept of the IDP before introducing it in legislation. Hence, when the IDP was introduced, it was in direct competition with other instruments of planning; its purpose was vague and its contents had yet to be specified. In this regard 14

26 Meiklejohn and Coetzee (2003:29) aver that, although the requirement for municipalities to produce IDPs was legislated, the conceptualisation at a policy level was still very limited and the concept took time to mature. Pillay, Tomlinson and Du Toit (2006:122) further highlight the fact that the first round of IDPs (between 1996 and 2002) revealed many shortcomings in their formulation and implementation. The Ministerial Advisory Committee found that many interim IDPs merely reflected shopping lists rather than a strategic and longterm vision of the development of a municipal area. IDPs tended to overemphasise infrastructure development at the expense of social and economic development. The areas of concern were also the weak links between the IDP and budgets and inadequate intergovernmental alignment. Thus, whereas the first post-apartheid planning instruments had been introduced in the Development Facilitation Act, 67 of 1995 promulgated in October 1995, there remained a need for a broader instrument to co-ordinate and direct the activities of local authorities (Pillay, Tomlinson & Du Toit, 2006:195). Van Donk, Swilling, Pieterse and Parnell (2008:323) state that the White Paper on Local Government, 1998 clarified the role of the IDP as it elaborated that it is a tool of development. However, according to Rauch (2002:16) the IDP was intended to become a key tool for developmental local government. Section 154 of the Constitution stresses that the municipalities, as part of their developmental duties, must structure and manage their administration, budgeting and planning processes to prioritise the basic needs of the community and to promote the social and economic development of the community. A perspective by Muradzikwa (2004:4) is that the Local Government: Municipal Systems Act, 32 of 2000 has also set out the methods, outputs and status of the process of the IDP. On 1 December 2001 the Presidential Co-ordinating Council (PCC) resolved to accelerate the implementation of a system of state-wide planning wherein the IDPs serve as the basis for aligning policy, planning and budgeting processes across all spheres of government in South Africa (IDP Nerve Centre Executive 15

27 Overview, 2002:7). The PCC comprised the Presidency, Minister of the national Department of Provincial and Local Government (DPLG), premiers and the chairpersons of organised local government. It was a consultative body dealing with cross-sectoral issues to ensure the co-ordinated and integrated implementation of national policies and programmes at provincial and local government spheres. The second round of IDPs after 2001 continued to show that the IDPs remained a learning process in terms of preparation, operationalisation and implementation (Pillay, Tomlinson & Du Toit, 2006:123). Thus, in May 2003 the national cabinet entrusted the former DPLG with putting together an Intergovernmental Planning Framework and Intergovernmental Relations Framework Bill that would strengthen the role of planning across the three spheres of government. Thus, to this end these developments influenced and shaped the development of the IDPs. 2.3 STATUTORY AND REGULATORY FRAMEWORK OF IDPs In this section the statutory and regulatory framework pertaining to the IDPs is explained. The statutory and regulatory framework establishes a basis and scope for the formulation and implementation of the IDPs Constitution of the Republic of South Africa Act, 108 of 1996 In terms of the Constitution, the municipalities are mandated with major developmental responsibilities to ensure that the quality of life for its citizens is improved. The role for local government includes provision of basic services, creation of jobs and eradication of poverty. Section 153 of the Constitution provides that the municipalities are provided with developmental duties in two senses. Firstly, they are expected to structure and manage their administration, to budget and plan in a manner that gives priority to the basic needs of the communities, and to promote the latter s socio-economic development. Secondly, municipalities are to participate in both national and provincial development 16

28 programmes in the spirit of co-operative governance (Ismail & Mphaisha, 1997:10) White Paper on Local Government, 1998 The White Paper on Local Government, 1998 contextualises IDPs as a way of achieving developmental local government. It stipulates that an IDP intends to: align scarce resources around agreed policy objectives; ensure integration between sectors with local government; enable alignment between provincial and local government; and ensure transparent interaction between municipalities and residents, making local government accountable. (RSA, 1998:18). The central theme of the White Paper is the need for municipal councils to become more developmental in focus. It further states that local government should fulfill its mandate to improve and accelerate the delivery of essential services and development Local Government: Municipal Systems Act, 32 of 2000 The Act sets out the principles, processes and mechanisms for municipalities to shift into a new position within the landscape of development and included in these is the integrated development planning process. Section 25(1) requires the municipal council, within a prescribed period after the start of its elected term, to adopt a single, inclusive and strategic plan for the development of the municipality which: (a) links, integrates and co-ordinates plans and takes into account proposals for the development of the Municipality; 17

29 (b) (c) (d) (e) aligns the resources and capacity of the Municipality with the implementation of the plan; forms the policy framework and general basis on which annual budgets must be based; complies with the provisions of Chapter 5; and is compatible with national and provincial development plans and planning requirements binding on the municipality in terms of legislation (Local Government: Municipal Systems Act, 2000). What is contemplated in the provision is that all municipalities (i.e. metropolitan, district and local) should undertake an integrated development planning process to produce IDPs. Section 26 of the Act further outlines the core components of the IDP of a municipality. It requires the IDP to reflect: (a) (b) (c) (d) (e) (f) the municipal council s vision for the long-term development of the municipality with special emphasis on the municipality s most critical development and internal transformation needs; an assessment of the existing level of development in the municipality which must include an identification of communities which do not have access to basic municipal services; the council s development priorities and objectives for its elected term, including its local economic development aims and its internal transformation needs; the council s development strategies which must be aligned with any national or provincial sectoral plans and planning requirements binding on the municipality in terms of legislation; a special development framework which must include the provision of basic guidelines for a land use management system for the municipality; the council s operational strategies; 18

30 (g) (h) (i) applicable disaster management plans; a financial plan, which must include a budget projection for at least the next three years; and the key performance indicators and performance targets determined in terms of section Intergovernmental Relations Framework Act, 13 of 2005 (IGR) The Act represents an important support mechanism to the IDP process and provides for the obligation of all spheres of government to allow their own planning processes to be influenced by the municipal IDPs. According to the IDP Skills Programme Learner Guide (DPLG, 2006:33) the implementation framework of the IDP depends on the ability, the investment and spending of other spheres of government. The Act fosters a greater level of co-operation across the different spheres of government based on systems of mutual support, information sharing, communication and co-ordination of activities. The objective is thus to ensure coherent government, effective service provision and the realisation of national priorities. The Act is also a response to the limited success in the alignment of the framework to support intergovernmental co-operation and co-ordination required by the Constitution Municipal Finance Management Act, 56 of 2003 (MFMA) The Act was promulgated to secure sound and sustainable management of the financial affairs of municipalities and other institutions in the local sphere of government. It has the objective of modernising budget and financial management practices in municipalities in order to maximise their capacity for service delivery. Section 53(6) of the MFMA provides that the mayor of a municipality must determine how the IDP is to be taken into account or revised for the purposes of the budget. Thus, the annual budget of a municipality should indicate how it gives effect to the IDP over the next three budget years and how the IDP may need to 19

31 be revised given the budgetary resources and spending commitments within the municipality Traditional Leadership and Governance Framework Amendment Act, 41 of 2003 According to Mojapelo (2007:48) a significant percentage of the population in South Africa resides in villages ruled and governed by traditional leaders. To this end a commitment is required from municipalities to ensure that traditional leaders are involved in both the IDP review process and any developmental matters. The Act argues for an active involvement of the traditional leadership in the formulation and the implementation of the IDPs. To this effect, section 4 of the Act provides for the establishment of traditional councils that should: support municipalities in the identification of community needs; facilitate the involvement of the traditional community in the development or amendment of the IDP of a municipality in whose area that community resides; participate in the development of policy and legislation at the local sphere; and promote the ideals of co-operative governance, integrated development planning, sustainable development and service delivery to promote indigenous knowledge systems for sustainable development and disaster management IDP Guide Packs In addition to all the aforementioned legislation, the Department of Co-operative Governance and Traditional Affairs (COGTA, formerly known as the Department of Provincial and Local Government - DPLG), supported by the organisation, German Technical Co-operation (GTZ), has produced IDP Guide Packs to assist municipalities with the integrated development planning process needed to 20

32 produce IDPs. These provide guidance on all aspects of the IDP, including its methodology, institutional organisation, the form of public participation and the way cross-cutting issues can be incorporated into planning. The following six guides may be used independently of one another: (available at: Guide I General IDP Guidelines Guide II Preparing of the IDP process Guide III Methodology Guide IV IDP toolbox Guide V Sectoral and cross-cutting policy issues Guide VI Implementation and Monitoring 2.4 REASONS FOR DEVELOPING AN IDP Pillay, Tomlinson and Du Toit (2006:15) indicate that IDPs provide a long-term vision for a municipality, detail the priorities of an elected council, link and coordinate sectoral plans and strategies, align financial and human resources with implementation needs, strengthen the focus on environmental sustainability and provide the basis for annual and medium-term budgeting. Schoeman (2006:5) contends that the central aims of an IDP are to develop a holistic, integrated and participatory strategic plan and guide the work of the municipality. Despite the various reasons for IDP by different authors, according to Pauw et al. (2009:280) the following are other valid reasons why municipalities should prepare IDPs: Effective use of scarce resources The IDP assists a municipality to focus on the identified and prioritised local needs, taking into consideration the availability of local resources as well as searching for more cost-effective solutions and addressing causes of 21

33 problems rather than dealing with their symptoms by just allocating capital expenditure on an ad-hoc basis. Improve service delivery IDPs provide a tool that will guide investment by getting the buy-in of all the relevant role-players as well as providing deadlock-breaking decision mechanisms and arriving at realistic project proposals. Attract additional funds A well prepared development plan encourages private investors and public sector departments to invest their money in a specific municipal area because the IDP is an indication that the municipality has a strategy in place that will direct its developmental actions. Strengthening local democracy and institutional transformation The decisions are taken in a democratic and transparent manner and not only by a few influential individuals. The Education and Training Unit ETU (available at lists the following as additional reasons why a municipality should have an IDP: Overcome the legacy of apartheid The municipal resources are used to integrate rural and urban areas and to extend services to the poor. Promotes co-ordination between local, provincial and national government The different spheres of government are encouraged to work in a coordinated manner to engage in the development needs in a local area. It seems, then, that the theory is that a municipality would act in an ad hoc, uninformed and unco-ordinated manner in the absence of an IDP. Thus, this situation may lead to: 22

34 o Duplication and wastage of limited resources; and o Other spheres of government imposing their development programmes on a municipality, which might not be a priority for the residents of a specific municipal area. Furthermore, according to the White Paper, 1998, the IDPs provide powerful tools for municipalities to facilitate integrated and co-ordinated delivery within their locality. Van der Waldt et al. (2007:175) contend that the IDP, as an explicit annual public statement of priorities linked to the budget, provides an important basis for accountability to municipal residents and stakeholders. Having examined reasons for developing IDPs, in the following section the planning process of the IDP is considered. The IDP Skills Programme Learner Guide / DPLG (2006:152) states that when the planning process of the IDP is properly conducted, every phase within such a process brings municipalities closer to an implementable plan. 2.5 OVERVIEW OF IDP METHODOLOGY The IDP is a product of the integrated development planning process. The IDP Guide Pack: General Overview (2000:4) defines integrated development planning as a process through which municipalities prepare a strategic development plan for a five-year period. The process undertaken to produce an IDP consists of five phases (Van der Waldt et al. 2007:103). Each phase should bring municipalities closer to an implementable plan (IDP Skills Programme Learner Guide / DPLG, 2006:152). The following are the phases of the IDP: 23

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